Russian analysts have long expected GM’s departure from the joint venture, in part because soon-to-be-former partner AvtoVAZ markets an all-wheel-drive Lada that competes against the Niva.
Domestic automakers including GAZ Group, KamAZ, Sollers and AvtoVAZ have asked for government support, contending restrictions on imported components could force them to suspend production.
Volkswagen contends levels of state support could be based on the extent of technological investment by an automaker, as well as localization of specific components such as engines and transmissions.
Ford Europe Chairman Stephen Armstrong says the company is in talks with several unnamed global automakers interested in one or both of its car factories, which are located in the republic of Tatarstan and in a suburb...
Rustam Kadyrov, head of strategic planning for UzAvtosanoat, says particular attention will be paid to production of a new low-cost flagship sedan aimed at both domestic and foreign markets.
Industry analysts estimate the BMW plant will require an investment of $270 million to $290 million and will have maximum capacity of 35,000 units per year.
Sources familiar with VW’s plans say planned investments will nearly double the Kaluga plant’s current capacity. That would make VW Russia’s second-largest automaker in terms of output, trailing only local automaker...